Caffeine crunch: Are Thai coffee drinking habits changing in the face of rising prices?

Caffeine crunch: Are Thai coffee drinking habits changing in the face of rising prices?

Samuel Tan - July 26th, 2024

In early July, coffee prices for Robusta beans surged to a record high – as drought-hit top producer Vietnam grapples with poor crop yields – while Arabica coffee futures swelled by 30% this year. The supply crunch comes amid rising coffee consumption across multiple Southeast Asian markets.

In this series, we throw a spotlight on the coffee drinking landscape in Thailand (this article) and Singapore, exploring:

  • How common regular coffee drinking is among consumers
  • Top coffee chains most popular with regular coffee drinkers
  • Whether coffee drinkers have noticed significant price changes
  • How coffee drinking habits have changed among consumers who feel the pinch

What proportion of Thais are regular coffee drinkers?

Latest YouGov Surveys research shows that regular coffee drinkers are in the majority of consumers in Thailand. Three in four (75%) consume the beverage once a month or more, with almost half (49%) doing so on a daily basis. 

Demographically, men are significantly more likely than women to be regular coffee drinkers: more than half of men say they drink coffee on a daily basis (55%) compared to over two-fifths of women (43%).

Younger consumers – Gen Z (65%) and Millennials (76%) – are also less likely to be regular coffee drinkers (once a month or more) compared to their older counterparts – Gen X (86%) and Baby Boomers (85%).

Which major café chains / coffeeshops are most popular among regular coffee drinkers in Thailand?

When regular coffee drinkers in Thailand – defined as consumers who imbibe the beverage once or multiple times a month – were asked to indicate where they typically buy their cuppa from, local coffee chain Café Amazon (owned by state oil and gas company PTT Public Company Limited) emerged as, by far, the most popular coffee chain that almost three in five (61%) frequent.

All Café (owned by global convenience store chain 7-Eleven), which enjoys the support of over two-fifths (44%) of regular coffee drinkers, is next most popular. American coffeehouse chain Starbucks takes third place with the support of around a third (32%) of regular coffee drinkers.

The next most popular coffee stores are local brands Punthai (21%), Inthanin (18%), True Coffee (15%), Black Canyon (12%) and Chao Doi (10%).

Australian chain The Coffee Club (8%) and D’Oro (5%) round out the top 10 coffee chains regular coffee drinkers in Thailand typically buy from.

How does the customer base of different coffee chains differ in their demographic profiles?Get in touch

Do most coffee drinkers feel prices for their cuppa have risen or stayed the same?

When asked to reflect on their coffee spending at cafés and grocery stores over the past few months, slightly under half of regular coffee drinkers in Thailand say prices have risen.

  • 46% say ordering the beverage from coffee shops is now more costly, with about a sixth (16%) saying prices have increased by a lot.
  • 45% say buying coffee beans/grounds or bottled coffee from supermarkets / convenience chains / online stores is now more costly, with around an eighth (13%) saying prices have increased by a lot.

On the other hand, close to two in five of regular coffee drinkers say prices have remained largely the same over the past few months.

Customers of The Coffee Club, Black Canyon and Chao Doi are most likely to say prices of their usual coffee shop orders have increased in the past few months, with about three in five (62-61%) indicating so.

Additionally, The Coffee Club (31%) – followed by D’Oro (28%) and Chao Doi (27%) – have the highest proportion of consumers who say prices have increased by a lot.

On the other hand, customers of the two most frequent chains All Café and Café Amazon are relatively least likely to report forking out more for their cuppa (50-49%).

How have coffee drinking habits changed among consumers who feel the pinch?

Over a quarter of consumers who indicate their usual coffee purchases have grown more costly in recent months say they have ordered less from cafés and coffee joints and brewed their own cuppa more (27%) or considerably reduced their overall coffee consumption altogether (26%).

Around a fifth of consumers have started buying more from coffee joints with lower prices (20%) and cheaper brands/versions of coffee beans/grounds/bottled drinks when grocery shopping (19%).

Meanwhile, an eighth have continued to stick with their usual coffee joints but are opting for coffee drinks lower down the price range (12%) or have largely switched from coffee to other beverages (13%).

On the other hand, about a fifth (21%) of consumers have not changed their coffee drinking habits in response to a rise in coffee prices.

How have customers of various coffee chains reacted to recent price increases?Get in touch

Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online in July 2024, with a national sample of 2,056 Thai residents, using a questionnaire designed by YouGov. Data figures have been weighted by gender, age, region and monthly household income to be representative of the adult online population in Thailand (18 years or older), and reflect the latest National Statistical Office of Thailand (NSO) population estimates. Learn more about YouGov Surveys: Serviced.

Cover Photo by vaishuphotography9807